BoE blog post proves Friedman right

Bank of England, on its Bank Underground staff blog on flexible exchange rate regimes:

When ... using a panel of 180 countries over 1960-2010, I find robust evidence that flexible exchange rates deliver a faster current account adjustment among developing countries.

...flexible exchange rates do deliver a faster adjustment of the current account for developing countries. After all, the data seems to verify the intuition put forward by Freidman more than sixty years ago.

Blog is certainly a great tool for central banks to share results of research like this one.